Misys admits a suitor is circling at £1.5 billion

Tuesday 21 June 2011 10:57 BST

One of the worst-kept secrets on the stock market was today thrust into the limelight as Misys, the global supplier of software to the banking industry, finally admitted it had received a bid approach.

Any offer is likely to top £1.5 billion as Misys shares leapt 33.3p, or nearly 9%, to 417.8p.

Since the rumours began circulating at the start of May the shares have risen by 105p, or 34%.

Analysts suggest that a take-out price could have to be 450p a share or more.

Top of the list of likely bidders is said to be SunGard, a private-equity-owned rival with major business in the UK.

But analysts suggested that other companies in the same area like FIS, Fiserv, Infosys, HCL and Temenos might well have been running the numbers over Misys.

The British company, with its headquarters in Paddington, issued a terse statement to the Stock Exchange.

It read: "The board of Misys plc notes the recent speculation regarding a possible offer and confirms that it has received a preliminary approach that may or may not lead to an offer being made for the company."

Mike Lawrie, who was brought in from a long career at IBM to become chief executive and turn Misys around in 2006, stands to make more than £5 million from his direct shareholding in the company and the same again on his share options.

Misys has had a chequered history. It was founded by Kevin Lomax as a supplier of software to the insurance industry in 1979.

It became a FTSE 100 company 1998 following a string of acquisitions.

Executive chairman Lomax became embroiled in the succession arguments at Marks & Spencer, where he was a non-executive director in 2005, and Misys shortly afterwards issued a shock profits warning.

Lomax was forced to split his roles, with Sir Dominic Cadbury coming in as non-executive chairman in late 2005.

The following year Lomax looked at making a takeover bid for the business but backed off and then stepped down to be replaced by Lawrie.

Lomax no longer has a significant stake in the company.

The largest shareholder, with a 26% stake, is Californian fund management group ValueAct.